USA HISTORY

Detailed explanation-1: -Lasting from July 1981 to November 1982, this economic downturn was triggered by tight monetary policy in an effort to fight mounting inflation. Prior to the 2007-09 recession, the 1981-82 recession was the worst economic downturn in the United States since the Great Depression.

Detailed explanation-2: -The economy entered 1982 in a severe recession and labor market conditions deteriorated throughout the year.-The unemployment rate, already high by historical standards at the onset of the recession in mid-1981, reached 10.8 percent at the end of 1982, higher than at any time in post-World War II history.

Detailed explanation-3: -It is widely considered to have been the most severe recession since World War II. A key event leading to the recession was the 1979 energy crisis, mostly caused by the Iranian Revolution which caused a disruption to the global oil supply, which saw oil prices rising sharply in 1979 and early 1980.

Detailed explanation-4: -According to the accepted arbiter of the economy’s ups and downs, the National Bureau for Economic Research, a brief recession in 1980-lasting only six months-and a short period of growth, were followed by a sustained recession from July 1981 to November 1982.

Detailed explanation-5: -In 2007–08 the secondary market was threatened by drastic declines in the value of securities backed by subprime mortgage loans (see below), resulting in the global financial crisis of 2007–08 and the ensuing Great Recession (2007–09). (See also mortgage-backed security; subprime mortgage; subprime lending.)